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Prison privatization is when a company builds and maintains its own prison and houses prisoners sent by the government. They make a profit by making contracts with the government where they will house prisoners in exchange for money. The main argument for prison privatization is that it costs taxpayers less than if the government ran its own prison. One of the first examples of prison privatization in America is in 1844 when Louisiana gave their prisoners to a company that used the inmates to manufacture clothes. Even though slavery was abolished in 1865, due to the 13th amendment it is still allowed today inside of prisons as punishment.

There is an increased percentage of blacks in private prisons compared to public prisons, this is because of the war on drugs and the fact that private prisons don't accept prisoners over 50. The war on drugs mainly arrested young people of color and made young people of color in prison more common than old people of color, so when private prisons deny people over 50 it increases the percentage of black in privae prisons.